Austin Housing Market Report August 2025

Staying informed about the Austin housing market is crucial, whether you're looking to buy or sell.  See what’s happening in the Austin housing market and how broader economic trends and local activity are creating a more balanced and confident real estate environment.

Austin’s housing market showed renewed energy last month, with more than 14,000 active listings and 5.9 months of inventory giving buyers plenty of choices. The median home price rose to $444K, a 1.3% increase from last year, while pending sales climbed more than 8% year over year, a sign that buyers are responding to lower mortgage rates and improved options. Together, these factors are setting up a more active fall market for both buyers and sellers.

Let's look at August numbers, which show mixed signals across the market:

• Active Listings Reach 14,220 — August closed with 14,220 active listings, up 13% year over year but down 5% from July.
• Home Prices Increase — The median home price was $444K, up 1.3% year-over-year and 2% month-over-month.
• Market Moving Slower — Homes averaged 68 days on market, 7 days longer than last August and 8 days longer than July.
• Buyer Activity Picks Up — Pending sales reached 2,669, up 8.2% year over year but 5% lower than July.
• Inventory Holds Firm — August recorded 5.9 months of housing supply, up 1 month from last year and down 0.2 months from last month.
• Market Snapshot — Over 14,000 homes are on the market, selling for an average of 92.3% of the original list price; Realty Austin Compass listings achieved 97.6% of their original list price and sold 13 days faster than the MLS average.

Mortgage Rates Shift After Fed Cut

Mortgage rates moved sharply after the Federal Reserve cut rates for the first time in 2025. Rates briefly dipped below 6.2% before climbing by 15 basis points after Chair Powell’s press conference. Even with the swings, rates are still near their lowest point this year, giving buyers a chance to secure better financing. Mortgage Bankers Association data shows purchase applications are up 20% compared to last year, signaling that many buyers are acting before rates turn higher.

“Mortgage rates near their yearly lows are opening the door for buyers who were on the sidelines earlier this year. The next few months may be the chance to find the right home before competition picks up again.” - John Coake, Senior Vice President at Realty Austin Compass.

Buyers Gain Opportunity as Rates Ease

Inventory held at 5.9 months in August with more than 14,000 homes on the market, according to MLS data. Combined with lower mortgage rates, buyers who were waiting for better conditions may find this fall to be the right moment to act. More options and improved affordability could drive a busy season for home buying.

“Buyer demand is picking up again, and sellers who list now could take advantage of serious shoppers eager to close before the holidays.” - Jennifer Korba, Senior Agent Success Manager at Realty Austin Compass

Property Tax Relief Adds to Positive Outlook

Along with lower mortgage rates and improving buyer activity, Texas homeowners could soon see relief on their property tax bills. Lawmakers approved a plan to raise the school district homestead exemption from $100,000 to $140,000, with higher exemptions for seniors and people with disabilities. The proposal heads to voters in November and, if approved, would apply retroactively to the 2025 tax year. This combination of easing rates and potential tax savings may give buyers and sellers more confidence heading into 2026.

Opportunity Knocks for Fall Sellers

Pending sales increased 8.2% year over year, according to the Texas Real Estate Research Center, showing that buyers are stepping back in as rates ease. Sellers who list this fall may benefit from serious buyers interested in moving before year-end, helping maintain steady market activity even as inventory rises.

Your Austin Advantage

Opportunity is growing across Austin as rates ease and more homes become available, setting the stage for meaningful moves this season. Realty Austin Compass is here to help you find the place that inspires your next chapter.

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